Study On The Effect Of Environmental Finance On Water Pollution Control

Water as the representative of the natural resources is an essential basis of the survival and development of human society.However, since the industrial revolution, the extensive mode of economic which as the cost of environmental pollution has made a lot of environmental problems such as water pollution, which restricted the further development of the economy.In recent years, with the rapid growth of China’s GDP, the consumption and the destruction of energy and other resources has become more and more serious.People’s Eighteenth Assembly of Communist party first proposed the "five construction" formally, raising the ecological civilization construction to the height of national strategy.Now,it is very important to achieve the sustainable development of economy and environment.However,only rely on administrative power is not enough,with its unique functions and mechanisms of concentrating the capital, surplus and deficiency as well as optimize the allocation of limited resources, financial began to be associated with environmental protection to achieve a win-win financial innovation and environmental protection, which produce the environmental finance.The environmental finance development in Jiangsu province is in a relatively leading position in the country.This paper used research methods such as theoretical analysis, case analysis and so on, through analyzing the path that environmental finance used in control the water pollution, discussing the environment of financial development in the role of water environmental governance.First of all, the article generalizes the research status at home and abroad, and on the basis of predecessors’ point of view, from three aspects this paper expounding the connotation of financial environment.Through finance for environmental pollution control theory foundation of the study, recognize the role of environmental finance in pollution control is positive and the use of the necessity of financial instruments for pollution control. Second, in understanding the present situation of water pollution and water pollution in Jiangsu province based on the analysis of the reasons, discussing the current absence of environmental development in Jiangsu province, mainly including the slow development of emissions trading, environmental investment and financing mechanism is imperfect, green credit mechanism is imperfect and so on, the study based on the VAR model finding that although the environmental finance developed relatively early in our country, but its effect on water pollution governance is not significant. Then, in order to further study in Jiangsu province as an example of the financial environment, the function of water pollution governance from two aspects of emissions trading and green credit for case analysis.Finally,proposing relevant policy recommendations for the foregoing analysis, including the establishment of emission rights arrived (pledged) loans and lease system of emission rights, promote local financial innovation to improve efficiency and improve environmental protection investments supporting the water environment governance and other legal regulations.